The Daily Cryptomenon
26th October 2020
Your daily Cryptocurrency Market Analysis News brought to you by the CryptoAltum Cryptomenon Team.
This analysis was written at 9:00 am GMT +3, on 26.10.2020
Over the weekend, the Cryptocurrency market continued to trade in the newly established range as the momentum upwards seemed to fade. However, this doesn’t mean it’s all gone. All indicators are pointing to the fact that there’s more upside potential. At the same time, Cryptocurrencies are reaching levels with excessive selling pressure enough to push them back down. With that said, let’s find out what today holds for the Cryptocurrencies on October 26th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - seem to have gotten a bit ahead of themselves as they run higher. While their attempt was impressive, it was met with strong resistances at the top end indicating that there might be some corrections happening soon.
The Cryptocurrency King was able to break above the $13,400 level during the weekend, but found immense selling pressure, enough to send it back below the $13,200 level. BTC managed to stay above the support at $13,000. As long as Bitcoin is able to stay above that support, the chance of another move higher is not out of the question.
Ethereum’s price action is suggesting that there might be an explosive move higher in the near-term as price action remains well bid above the $400 support as well as the RSI which is showing signs of mounting bullish pressure.
Failing to break above the $0.2590, Ripple seems to be suffering from a bearish correction that’s trying to change the momentum. However with the supportive zone between $0.2520 and $0.2500, the chances of that happening are quite slim.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 22.49% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 16.09% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 4.91% on a month-to-month basis.
*Please note that we mention month/on/month we mean the same day, one month ago. For example, 1st September till the 1st October.
What’s the strategy you’re going to use when it comes to these cryptos? Will these Cryptocurrencies consolidate at their respective levels? Or will there be a major price shock to move them again? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Hesitates Above $13,400
Bitcoin price remained flush with positive momentum as the buyers kept the Cryptocurrency above the 13,000 resistance. They even extended BTC’s rise. Not only that, but the Bulls even broke the last high at $13,250 and traded to a new monthly high at $13,361. Recently, there was a downside correction and the price broke the $13,000 support. The decline found support near the $12,800 zone. There’s also a crucial bullish trend line forming with support near $12,900 on the hourly chart of BTC.
Bitcoin is currently rising and trading above the $13,000 level. There was a break above the 50% Fib retracement level of the recent decline from the $13,352 high to $12,834 low. An immediate resistance is near the $13,150 level. To continue higher, BTC must gain momentum above the $13,200 level. If there’s a daily close above the $13,200 level, the price is likely to accelerate higher above $13,350. The next major resistance on the upside is near the $13,500 level.
If Bitcoin fails to climb above the $13,150 and $13,200 resistance levels, there could be a fresh decline. The main support is near the trend line at $12,900, below which the Bulls might even struggle to protect the $12,800 support level in the coming sessions.
Ethereum Looks for Support at $400
Ethereum failed to set a new monthly high above $420, unlike Bitcoin. Ether seems to be facing a couple of major hurdles near the $410 and $412 resistance levels. The last swing higher was near $418 before the price declined below the $410 support. There was a break below a key contracting triangle with support near $412 on the hourly chart. However, Ether’s price remained well above the $400 support.
A low is formed near $403 and the price is currently consolidating in a range. There was a break above the $405 level, but the price is facing a strong resistance near the $410 level. It’s also close to the 50% Fib retracement level of the recent decline from the $418 high to $403 low.
If Ethereum fails to clear the $410 and $412 resistance levels, there’s a risk of a fresh drop. The first major support is near the 100 hourly simple moving average and $405. The main support seems to be forming near the $400 level. The continuous failure of gaining traction above $410 might even result in a sharp decline below the $400 level (the last key breakout zone).
Ripple Looks Like Consolidating
Analysts’ predictions of Ripple show that this Cryptocurrency will jump towards the $0.3000 mark soon. The price observed an uptrend right after closing the 25th of October and moved towards the $0.258 level. The horizontal support lies within a zone between the $0.2520 and $0.2500 which has recently stopped Ripple from experiencing a bigger downturn.
Ripple headed towards the resistance level at $0.2590 again, but the presence of sellers prompted a correction in which this Cryptocurrency is currently experiencing. However, momentum remains quite bullish, so the potential of a move lower is quite low. However, the bearish momentum will be large enough for the Cryptocurrency to fall towards $0.248, where a major ascending line lies. This region is important for Ripple to hold.
The current price composition of Ripple as well as the current formation of the RSI suggests that there will be some consolidation with neither Bulls nor Bears getting the upper hand. The RSI movement is capped by the 60 level and floored by the 40 level indicating that neither schools of trading are getting the upper hand.
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